WhatsApp Takes On Google, Alibaba In India's Phone Payment Battle

WhatsApp on Friday entered an increasingly tense battle between multinational giants such as Google and Alibaba for a chunk of India's fast growing digital payments market.

The Facebook-owned firm said it was launching Whatsapp Pay just hours after it was given permission by the country's payments regulator. India is the messenger firm's biggest market with some 400 million users.

Whatsapp Pay -- which allows people to send and receive money through the messaging platform --was launched in Brazil in June but was quickly suspended because of competition objections raised by the central bank. Authorities have since indicated that it will be allowed there.

Facebook chief Mark Zuckerberg said in a video statement accompanying the India launch that the move would boost "innovation" in payments.

Zuckerberg also hailed India's Unified Payments Interface (UPI) which is used in the country of 1.3 billion people to manage payment apps, with more than 140 Indian banks part of the network.

UPI is also used by Alphabet Inc's Google Pay, Walmart's PhonePe and Alibaba-backed Paytm, which dominate India's digital payments market.

"India is the first country to do anything like this," said Zuckerberg of the network.

India's UPI processed more than two billion transactions in October and 1.8 billion the previous month.

The stakes are high for all the competitors as the digital payments market was worth about $75 billion in 2019 and is expected to rise past $500 billion by 2025.

WhatsApp has linked up with five Indian lenders including State Bank of India, the largest public sector institution, HDFC Bank, ICICI Bank, Axis Bank and Jio Payments Bank to roll out the service.

The National Payments Corporation of India has put a cap of 20 million users of the Whatsapp service in the first phase. All must have a debit card and a bank account.

The American firm has been waiting for two years to launch its service, testing pilot payments for about a million customers.

Copyright AFP. All rights reserved.

RECENT NEWS

MrBeast's $5B Gamble Shakes Financial Markets

In a remarkable twist of modern finance, YouTube phenomenon MrBeast is reportedly seeking a staggering $5 billion valuat... Read more

BlackRock's Panama Deal Shakes Global Trade

In a bold $22.8 billion move, BlackRock, the world's largest asset manager, has spearheaded a consortium to take control... Read more

AI Hedge Fund Outshines Global Indices

Minotaur Capital, a Sydney-based hedge fund, is making waves in the finance world with a striking 13.7% return in just s... Read more

Tesla Valuation Crashes, Sparks Global Debate

Tesla, the electric vehicle giant, has seen a dramatic fall in its market worth. For the first time since November 2024,... Read more

Berkshires Earnings Soar With Rising Rates

Berkshire Hathaway has surprised many finance professionals by posting a 71% jump in operating earnings during the fourt... Read more

Rio Tinto May Delist From The UK

Mining giant Rio Tinto has called on shareholders to oppose proposals to abandon its London listing, as pressure mounts ... Read more